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COMMITMENTS AND CONTINGENCIES
9 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
COMMITMENTS AND CONTINGENCIES

6.    COMMITMENTS AND CONTINGENCIES

 

Settlement of Vendor Dispute 

On March 31, 2011 we entered into a settlement agreement with Billco Manufacturing Inc. agreeing to pay $30,000 in the form of 3 equal monthly payments of $10,000 commencing April 15, 2011 as full and final settlement for an open book account balance of $340,568 purportedly owed to the vendorby XsunX. XsunX completed all payments and on June 22, 2011 we received a full release from the vendor. The accounts payable liabilityof $209,580 which the Company booked while working to settle this claim was reduced to $30,000 and the Company recognized $179,580 gain on settlement of debt.